Saudi Arabia’s Industrial Production Index (IPI) declined 2.3% in 2024 compared to the previous year, according to new data released by the General Authority for Statistics (GASTAT). The drop was largely driven by a 5.2% fall in oil-related activity.
The mining and quarrying component, which includes crude petroleum extraction, declined by 6.8% year-on-year. This offset gains in non-oil sectors, where the index rose 5.3%, signalling continued diversification of the Kingdom’s industrial base.
Manufacturing output grew by 4.7% in 2024, while the electricity, gas, steam, and air conditioning supply sector increased by 3.5%. Water supply, sewerage, waste management, and remediation services posted a 1.6% rise.
The IPI tracks changes in industrial production volumes based on data from GASTAT’s industrial production survey. Oil activity remains the largest component of the index, and fluctuations in output continue to influence the headline figure.
The data comes amid efforts under Saudi Arabia’s Vision 2030 programme to expand non-oil sectors, including manufacturing and utilities, and reduce reliance on hydrocarbon revenues. According to the Ministry of Industry and Mineral Resources, over 1,500 new industrial licences were issued in 2024, with total investment pledges exceeding SAR 120 billion.
